Vending

General Mills reports Q2 2024 sales, earnings declines

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December 20, 2023

General Mills Inc. reported sales and earnings declines for Q2 2024 against the prior year period due to slower-than-expected growth, according to an earnings report. Highlights include:

• Net sales fell 2% from $5.22 billion in Q2 2023 to $5.14 billion for the quarter ending Nov. 26, 2023, with lower pound volume partially offset by favorable net price realization and mix. Organic net sales were 2% below year-ago results that grew double digits; organic net sales were up 4% on a two-year compound growth basis.
• Net earnings fell 2% from $605.9 million to $596 million in the comparative quarters.
• EPS rose 2% from $1.01 to $1.03 on a basic basis and 1% from $1.01 to $1.02 on a diluted basis, driven primarily by higher operating profit and lower net shares outstanding, partially offset by higher net interest expense.
• Adjusted diluted EPS rose 14% to $1.25, driven primarily by higher adjusted operating profit and lower net shares outstanding, partially offset by higher net interest expense.
• North America retail sales fell 2% from $3.37 billion to $3.3 billion.
• North America foodservice sales were flat at $582 million.
• International sales rose 2% from $671.7 million to $683.1 million.
• Pet sales fell 4% from $592.9 million to 4569.3 million.

Shares traded today at $65.07 against a 52-week range of $60.33 to $90.89.

The approximately $5.1 billion in revenue missed analyst expectations by $260 million while the non-GAAP EPS of $1.25 beat expectations by 9 cents, according to Seeking Alpha.

"While we saw a slower-than-expected volume recovery in the second quarter amid a continued challenging consumer landscape, we generated bottom-line growth thanks primarily to strong HMM cost savings," Jeff Harmening, chairman and CEO, said in the press release. "For the full year, we've revised our topline outlook to account for a slower volume recovery, narrowed our profit and EPS expectations within our original guidance ranges and maintained our outlook for strong free cash flow conversion."